Wholesale distribution is an ever increasing market that is facing a lot of global competition at lower margins. Between managing the supply chain, quality control and delivery dates, among other important processes, paying attention to cash flow tends to get pushed to the wayside. However, cash flow is what keeps your company running. In order to manage time and accounts receivable in a more efficient manner, many companies are turning to wholesale distribution accounts receivable software.
One of the main problems with cash flow that a lot of wholesale distributors keep running into is their use of spreadsheets and paper-based accounts receivable. These methods allow for minimal visibility into accounts receivable and financial planning. Using a wholesale distribution accounts receivable software eliminates a lot of these problems. Here are 4 ways a wholesale distributor will benefit from accounts receivable software.
Eliminate Invoice Creation
With wholesale distribution accounts receivable software you will never have to create an invoice from scratch again. You can choose invoice templates and simply fill in the blanks with the correct company information. Send these invoices via auto-generated email and allow the customer to pay through an online portal, and you’ll be getting paid 20 percent faster.
Reduce Invoice Disputes
Invoice disputes make up half of the reasons that many businesses don’t get paid on time. Using an automated accounts receivable software, invoice disputes can be immediately escalated to the right manager to handle them, based off rules created in the system. Each invoice can be attached to a reason code, so invoice disputes can be assessed for the most common problem.
Most wholesale distribution accounts receivable software can integrate with popular ERP solution such as, Epicor, Sage, Microsoft Dynamics, Intacct, or NetSuite. With integration to your ERP system, you can review and attach important invoice documents such as shipment, bill of lading or freight information.
The best way to tackle late payments is to send reminder emails to customers when their invoice is due. A lot of wholesale distributors, however, just don’t have time for that. A wholesale distribution accounts receivable software will do these type of tedious manual tasks for you to customers based off the settings you prefer, auto-sending collection emails, past due notices, welcome letters or payment reminders.
Using wholesale distribution accounts receivable software makes credit and collections team’s tasks much easier. Less time is spent manually entering numbers and searching for data and more time is spent actually receiving the money that is due.